When Term Coverage Ends
Term life insurance is designed to provide coverage for a set period, such as 10, 20, or 30 years. Many people purchase a policy and don’t think about it again until the end of the term approaches.
When the level-term period ends, some policies allow you to continue coverage, but the premium may increase substantially according to the policy’s renewal schedule. For many people, the cost of continuing coverage may eventually become difficult to justify.
Many term policies also include a conversion option. Depending on the policy, this may allow you to convert some or all of your term coverage to a permanent life insurance policy, such as whole life, without new medical underwriting. Conversion rights, available products, coverage amounts, and deadlines vary by policy and insurance company.
That option can be particularly important if your health has changed since you first purchased the policy. Converting may allow you to obtain permanent coverage without having to qualify based on your current health, subject to the terms of the conversion provision.
Don’t wait until the term expires to find out what your options are. Your conversion deadline may occur before the end of the term, and some policies have specific age or other restrictions.
If your term policy is more than halfway through its term, consider reviewing the policy and its available options. Understanding the coverage, costs, conversion provisions, and deadlines can help you make an informed decision while you still have choices.
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Spencer Legacy Insurance is an independent, faith-based insurance agency at 828 Lake Avenue Suite C in Gothenburg, in central Nebraska. Independent since 2004, we help families, farms, and businesses with life insurance, health insurance, Medi-Share, Medicare, annuities, long-term care, and the Infinite Banking Concept.